According to Craig McNaughton, the area director for Lloyds TSB Commercial, asset refinancingis becoming an increasingly viable option for small businesses in the UK, and in particular engineering re-finance and printing re-finance. Thanks to the stabilisation of...

Haulage Re-finance

How haulage re-finance works

By determining the 'stress' or forced-sale value of the assets within a company, haulage re-finance lenders can identify how much asset re-finance the business can be eligible for. Lenders can provide cash in a low risk environment because the lending will be secured against the total value of the business's assets.

By performing a desktop valuation, which is simple, quick and free of charge, lenders can confirm the final amount of asset re-finance that the business will be entitled to. Because banks do not normally require an analysis of working assets, haulage re-finance has a very limited impact on the risk to the institution.

In many cases, the limited number of haulage re-finance lenders may prefer to reduce overdrafts or other unwanted exposure through this arrangement, which may help to balance the risks of the bank's existing lending agreements. They will use a lower interest rate if the perceived risk is lower but even with a higher interest rate, the cost of the haulage re-finance will be outweighed by the rewards delivered for the business in the long term.

A fast cash boost from haulage-financing

Compared to traditional bank loans, which can take weeks or months to be formalised, haulage re-financing agreements can provide funding in just days. The owners or Directors of the business will usually be expected to provide an unsupported guarantee and may receive funding for a period of up to 5 years.

Before haulage re-financing, many businesses may prefer to contact their long-standing financial partners and bank Relationship Manager for support. However, business owners already self-funding their untapped assets are less likely to win support from such partners.

To understand how much capital you could raise from your own business assets contact us today.

Enquire today

We can deliver a free desktop valuation of your tangible business assets which may determine how much cash you can raise for your business.

All we will require is a list of your business assets including:

MakeModelDescriptionAgeMiles/hours workedCurrent estimated value

For a free initial consultation please send us your details and we will contact you for a chat.

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